An important American law on cryptocurrency regulation seems to be back on track. The Senate Banking Committee is planning a crucial hearing after a new compromise.
In summary: – The US Senate plans a hearing on May 14 on the Digital Asset Market Clarity Act. – A compromise on stablecoin regulations has thawed the situation, which has been frozen since January. – The law strengthens the powers of the Commodity Futures Trading Commission, but it has faced criticisms.
Following a breakthrough, the Senate Banking Committee has scheduled a markup hearing for the Digital Asset Market Clarity Act on Thursday, May 14. The bill, aimed at granting more powers to the Commodity Futures Trading Commission (CFTC), was stalled since January. Disagreements over issues like stablecoin yields had slowed down discussions. A recent compromise by Senators Thom Tillis and Angela Alsobrooks has revived the process.
Disagreements surrounding stablecoins and smaller tokens: – The new compromise prohibits companies from offering returns on the static reserves that back stablecoins. – Rewards linked to other uses of stablecoins, however, remain permissible. – Various banking organizations have stated in a letter that “additional work is needed to achieve a text that fosters innovation while protecting consumers.” – Coinbase had previously withdrawn its support for the bill due to concerns about regulations on stablecoins and tokenized equities. – Crypto platforms have also pushed to remove a provision limiting trading to assets that are “difficult to manipulate,” as it would complicate the offering of smaller tokens.
Ethical considerations and next steps: – Senator Kirsten Gillibrand aims to include an ethics clause in the law to prevent high public officials from benefiting from the crypto industry they regulate. – 73% of American voters support this position, according to a poll. – After the hearing, the Senate will need to merge this version with a previous version from the Agriculture Committee. – The text can then be put to a vote by the entire Senate. – A White House advisor hopes for adoption by the House of Representatives before July 4, following a Senate vote scheduled for June.
